Liquidity Services Q1 2022 Earnings Report
Key Takeaways
Liquidity Services reported a record GMV of $260.2 million, a 37% increase year-over-year, and revenue of $66.7 million, a 20% increase year-over-year. GAAP Net Income was $3.6 million, down from $4.5 million in the prior year, and Non-GAAP Adjusted EBITDA was $9.4 million, up from $8.8 million in the prior year.
Gross Merchandise Volume (GMV) of $260.2 million, up 37% setting a new all time record, and Revenue of $66.7 million, up 20%
GAAP Net Income of $3.6 million, down $0.9 million, and GAAP Diluted EPS of $0.10, down $0.03
Non-GAAP Adjusted EBITDA of $9.4 million, up $0.6 million, and Non-GAAP Adjusted Diluted EPS of $0.18, flat
Cash of $91.3 million, $61.3 million trailing 12 month operating cash flow, and zero financial debt
Liquidity Services
Liquidity Services
Forward Guidance
For Q2-FY22, Liquidity Services expects GMV to range from $260 million to $290 million, GAAP Net Income to range from $1.5 million to $4.5 million, GAAP Diluted EPS to range from $0.04 to $0.13, Non-GAAP Adjusted EBITDA to range from $6.5 million to $9.5 million, and Non-GAAP Adjusted Earnings Per Diluted Share to range from $0.11 to $0.20.
Positive Outlook
- continued R&D spending to support omni-channel behavioral marketing, expanded analytics, and buyer/seller payment optimization
- increased spending in business development activities to capture market opportunities, targeting expected payback periods of 12 to 18 months
- stabilized macroeconomic factors that most directly influence the supply and recovery rates of asset categories, such as transportation assets
- marketplace seasonality converging back to prior trends
- continued mix shift to consignment pricing model, which will lower revenue as a percent of GMV but can improve gross profit margins
Challenges Ahead
- variability in the inventory product mix handled by the RSCG segment, which can cause a decline in revenues and/or gross profit margins, including variability due to sellers better optimizing their reverse supply chain operations to return more product to shelves and to avoid episodic seller capacity constraints at certain warehouse locations
- continued growth in the government real estate category within the GovDeals segment, which will lower revenue as a percent of GMV but is not expected to significantly impact gross profit margins. COVID-19 and its variants can impact the availability of government resources to make properties available for auction, which could cause delays in the timing of auction events
- continued variability in project size and timing within our CAG segment, especially as COVID-19 and its variants continue to impact the global economy and the ability to conduct cross-border transactions
- continued growth and expansion resulting from the continuing acceleration of broader market adoption of the digital economy, particularly in our GovDeals and RSCG seller accounts and programs, including the execution by RSCG on its business plans for the launch of AllSurplus Deals and expansion of its distribution network into the northeast
- continued growth in our Machinio Advertising subscription service and acceptance of other Machinio service offerings